NOTE (NOTE) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly sales of SEK 1,175 million in Q2 2026, up 20% year-over-year, with 1% organic growth and the remainder from acquisitions.

• Strategic acquisitions (STI and Kasdon) and investments in new and upgraded plants in Sweden and the UK have strengthened positioning, especially in Security & Defence.

• Strong order intake and positive customer wins, especially in Security & Defence and Industrial segments; order backlog for the current year is 11% higher than the previous year.

• Component shortages, particularly in PCBs and semiconductors, led to extended lead times and some delivery pushouts.

• Operational cash flow was negative SEK 34 million due to inventory tie-up from supply constraints and acquisition-related outflows.

Financial highlights

• Adjusted operating profit reached SEK 112 million, up 19% year-over-year; reported operating profit was SEK 90 million.

• Adjusted operating margin held steady at 9.6% year-over-year; reported margin declined to 7.7% from 10.3%.

• Order backlog increased 11% year-over-year on a like-for-like basis, excluding new acquisitions.

• Western Europe sales rose 32% (5% adjusted for acquisitions); Sweden up 8%; UK declined 13% adjusted for acquisitions; Rest of World sales fell 12%, with China down 32%.

• Gross margin improved to 14.6% in Q2 from 13.4% a year earlier.

Outlook and guidance

• Expect continued strong organic growth in the second half, driven by Security & Defence and Industrial segments.

• Underlying operating margin guidance remains at 9.5%-10.5%; currently at 9.4%.

• Communication segment expected to return to growth from Q3 onwards.

• Medtech segment to remain weak for the next two to three quarters; no major recovery expected short-term.

• GreenTech expected to maintain current sales levels in coming quarters.